This report was written at the request of Mr. Guillermo Merelo, Organization and Management tutor, to investigate and analyze management in an organization in the context of current management theory.
1.2 Scope and Methodology
The report considers a range of organization issues, researching key aspects of management within the organization. The organization's management structure and processes are analyzed and evaluated in relation to current theory.
1.3 Executive Summary
In this assignment of organization and management I was asked to select a well renowned organization in New Zealand and find out the management principles summarizing our findings and analyzing them in terms of the current management theory. I decided to choose Subway Queen Street as my organization.
As part of the assignment, I had to conduct an interview to get more details regards the organization with the Store Manager, Mr. Pinal Patel.
In every topic, the findings and analysis are discussed in detail.
In the second section, I discussed about the structure of the organization followed by the various departments involved.
The next topic of concern was environmental factors in which, both internal and external factors are found out and analyzed which affects the business of the organization directly or indirectly.
Planning and control tells about the planning and control systems and various processes used within the organization such as Finances controlling, Advertising, and Salary Structure.
The next topic is team structure and dynamics where we discussed how teams are formed, both formal and informal within and outside the organization.
Finally leadership describes the leadership qualities of the management and the effectiveness of their management strategies.
2.1 Type and Size of organisation
2.1 (a) Findings
This Subway opened was opened on 10th July 2006 in Auckland CBD. The very first purpose of Subway is to provide American Style service as it is an American franchises restaurant and with target on providing best customer service than other restaurants. Subway comes with the motto of "EAT FRESH" mean that they are known for the fresh products they sell both vegetarian as well as non vegetarian food products. As a legacy it is owned and operated by Doctor's Associates Inclusive. They don't have any focus of achieving any kind of sales target weather on weekly or monthly basis. The restaurant analyzed by me has currently 10 employees.
1 Store Manager
2 Shift manager
6 Part-Time staff (Crew)
1 Full time staff (Crew)
The Head office of Subway in Auckland is at Albany (North shore). As per today there are near about 50 Subway branches all around Auckland and 256 all in New Zealand
Store Manager is responsible for maintenance of inventory supply, confirm and follow the safety and hygiene related issues and inspect daily cash balancing and transaction activities. He also controls lower management.
Sift Manager Control customer service and give assistant to Restaurant manager. Also he operates the work of Store manager in his absence.
Other Crew Staff only emphases on customer handling and giving any report to the Store or Shift manager if asked.
2.1 (b) Analysis
This organization is running very well because everyone is well trained from managers to workers. Manager arranges monthly meetings all the workers sit together and give suggestions for the betterment of the organization. In the light of these suggestions, management makes future plans.
Since there is enough number of employees, there may be no delay in the service in peak hours and which will leads best service for the customers to order. And finally there is an increase in the daily customer counts. In spite of all this there may be sometime worst case that the staff is sick or absent due to any other reason so in that case to cover the loss Manager should hire some casual staff also which may cover up the positions and the service level remains the same. Subway is trying to enhance their sales and no doubt they are achieving this due to the secret of the low fat food. One more thing which I noticed about SUBWAY Queen Street is that the store is of old fashioned and less comfortable in furnishings. Also, they do not provide free Wi-Fi for the customers, which I feel little awkward and felt like they just want their customers to take their food and go.
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2.2 Organisation structure
2.2 (a) Findings
The structure in the organization is a flat structure. The reporting to the manger in the organization is done on daily basis. Subordinates report to their manager and then manager report to his superiors which are the area manager and the operational manager. There are no such different departments of work like Human Resource, Marketing etc only there is a Operational Department which helps in making the big decisions for the company
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2.2(b) Analysis
Since this Subway posse a flat structure so there is a direct control of the manager over his/her employees moreover employees can also discuss their problems with the manager and get to a solution of any problem as soon as possible. There are fewer mistakes in the restaurant's working because of close supervision and control.
For the food brand like Subway, this kind of structure is suitable because you need to have a clear line of knowledge of all the work done also maintiance of a good relation with other members is essential. Since Subway is dealing with the customers on the daily basis therefore a clear line of authority makes the working easier.
2.3 Environmental factors
2.3(a) Findings
External Factors
There is a Food Grading System which is made to improve the food safety. There are a number of steps that should be in place in the restaurant front and kitchen to ensure they produce safe food. The main role is of Auckland Council that helps to encourage businesses to develop some food safety policies.
To comply with Auckland Council's grading system, the Subway is required to get assessed by Council. The assessment topics covered are:
Food safety courses
New staff inductions
Dealing with staff illness
Contamination Control
Cleanliness of Kitchen
Maintenance of the kitchen
Pest control
Stock equipment
Temperature control
Waste disposal
Subway is in competition with Habitual Fix and Pita Pit. They did lot of advertisement like Subway's to sell their products. They also offer some specials to catch the attention of the customers. These tactics sometimes affects the economy of Subway.
Subway helps people especially students to work for living. Due to their practices country helps to deal with the unemployment problems. Also the store helps the international workers for extension of visas and to some extend also helps in their residency ship
Internal Factors
When the Subway needs some staff of working they start a hiring process. The first step includes posting vacancy either online or physical advertising in the restaurant. After the collection and short listing of resumes the store manager interviews the shortlisted people and finally selects the crew, all the selection process is done by the area manager if the hiring is done for a newly opened store.
After hiring is done, applicants are scheduled for the paid training period of 15 hours for basic food handling and health and safety. Store manager also gathers a record of the visas of the employees and signs a contract of work.
For the communication process they use the emails and pagers as a primary source. If there is some serious problem then they use telephones as it is the fastest way. Subway also conducts direct meetings with the workers and the managers to sort out the issues of work and services.
The week starts on Wednesday and ends on Tuesday. Every Tuesday stocking is done which includes counting of each and every product in the store this stocking is done by the shift managers. This stocking helps the store to keep their stocks updated and have direct control on products. After making of the stock sheet it is reported to the Area Manager and he prepares the budget for the store.
2.3(b) Analysis
The standard of food and hygiene which is set by Auckland Council helps people to trust the quality of the products offered by Subway.
The Immigration Authority of New Zealand also supports the migrants from other countries to live and work in NZ lawfully. Subway being a potential employer, supports their migrant employees to get their work visa extended and they promotes the employees from crew member to team leader/duty manager which will help the migrants to be eligible for permanent residency.
So according to the stores possesses a good ethical approach nevertheless it can be made more advanced by checking the skills and experience of the workers.
The hiring process I felt is quiet simple and straight forward
2.4 Planning & control systems, processes and strategies
2.4 (a) Findings
Planning and controlling are the most essential parts of any organization. It is impossible to achieve the goals of an organization without planning. There are no such different departments like Human Resources, Finances, and Advertising etc in this store.
Store Manager is responsible for planning and allocating the tasks to the employees. He examined whether the plan made by him is implemented accurately or not
The store in fully insured by AA company and they help the store in any case of financial crises or some loss otherwise the finances of the company are managed by Area manager. Maintaining the Financial standards of the organization is also very important because it determines whether the business is going in profit or loss. Here they decide, how much money, they have to spend in which area. They make decisions that how much stock they should be need and how many staff members they should be hire. It also makes plan that how much and where it is going to spend money for the next year.
The other planning and controlling process include advertising which is mainly done in the days when the business is not going so well. Advertising in the store is done through radio, TV, Internet, Face book Pages and sometimes physical advertising by distributing pamphlets.
The salary record as well as the visa record is also maintained though Subway University Online.
Hiring is done by Store or Area Manager itself
These are ordinary and especially main organize systems for any organization. To run an organization and manage the organization of all group work, these all systems are use to control the economic arrangement, action method and control all information system which is especially required.
The income tax is deducted by the store managers and then the wages are deposited electronically. The income tax is submitted to IRD on monthly basis.
2.4(b) Analysis
Advertising should be more effective and this should be encouraged.
Sometimes it might be difficult for the store manager to maintain all the records of salaries, hiring of people and performing other tasks including banking etc so a different department for all these can help the store to improve the performance.
2.5 Team structures & Dynamics
2.5 (a) Findings
The teams are very well organized within the group. The teams are made on the level of their experience. The teams within the organization are formal and outside the organization, they act informal. There is no third party influence on Subway. Every month a lady called Compliance Lady comes through the head office for store inspection. She rates down the store on the basis of product expiry, cleanliness level, stock level etc. She also decides whether the store pass or fails under the assessment, and if the store fails for consecutively 3 time then it is closed for a short period of time. Team roles depend on the knowledge and skills of every individual. The team performance is monitored by the manager for individual and for the team as a whole as well. The team performance and the team dynamics are two crucial parts of a team. The performance is then analyzed and in order to sort out the problem, the right steps are followed. Team roles are assigned by store manager
Predicts the tasks that needs to be done
Assigning roles and responsibilities to workers
Learning other team member's roles and responsibilities
The performance review of the worker helps to assess certain things about an employee, like whether the job is been done up to mark or according to job description, whether they are enjoying their work, the objectives that they need or want to achieve and the type of training and development they need or want
2.5(b) Analysis
As per the above information the team performance of this organization is monitored by the manager but as per our suggestion the company should take individual feedback from employees to identify any disputes or problems. And if you are introducing any new equipment in your organization give proper training about the equipment so the worker knows about it.
There must be different uniform for the workers of the upper level i.e. Store and Shift manager. The number and type of duties should be assigned according to the capability and level of experience of an individual. Timely increment in wages also motivates employees in productivity. Duties should be changed daily so all worker can know the entire thing in an organization. Each and every plan of the organization of the company should be explained clearly for easy achievements. Since the working environment of the store is multicultural so this helps in increase of number of customers.
2.6 Leadership
Leadership in Subway is done by store manager himself, Mr. Pinal Patel. He is a well experienced manager in managing customer service business and he has gained a 5 year experience and runs the whole store.
In a successful organization a good leader at all times works with patience and always takes decision smartly. Subway believes in the training of the workers. The manager observes the day to day activities of workers and tells them where they are doing something wrong. In case of good performance, he appreciates them. If in some case manager has a work related problem with any employee then he issues him the warning letter and after 2 warning letters the manager can simply terminate the employee on his third mistake
Motivation is also very essential in any organization. The first thing is that employee's got train to do their job. They don't feel rush during working hours. They are also motivated because they think; they will get enough training here for their future success. One way of motivation is that manager walks around during work time and appreciates the performance of the workers. If he observes that someone is doing very well, he offers him free meal in break time .There is an employee of the month. The workers also get incentives and 50% off on the subway product once a day.
2.6 (b) Analysis
Subway is following a modern leadership style as this lead to a good decision making. Manager also motivates the workers to enhance their skills but a little more motivation is necessary to improve this. Quickness with Effectiveness is required in the restaurant which is achieved due to the hard work of workers. According to me, putting pressure on employees is not good because working under pressure leads to speed but it decreases the efficiency of work.
